Industry raises prices – AGAIN – while taxes remain largely unchanged

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In mid-August, Imperial Tobacco again raised prices on its tobacco products. As shown in the price list circulated to retailers and pasted below, they are now charging from $2.50 to $4.50 more per carton in Ontario. Price increases in other provinces have not yet been located, but they are usually imposed at the same time....

New vaping promotions expose challenges to regulators.

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Over the past couple of weeks, BAT (owner of Nicoventures and Imperial Tobacco Canada) has launched new promotions in Canada for its vaping products. This campaign is part of a global re-branding initiative the company shared with investors in March. This campaign can be seen as a test run of the federal government’s plans for...

Calculating the profits of tobacco companies in Canada

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How much do tobacco companies make in Canada?  Answering that question became more difficult about a decade ago, after all three of the traditional tobacco companies (BAT-Imperial Tobacco Canada, PMI-Rothmans, Benson and Hedges, and JTI-Macdonald) became fully-owned subsidiaries of multinationals and the fourth (Grand River Enterprises) remained a privately held operation. Over the past year,...

Sales of combustible tobacco are falling in many countries

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During last week’s investor day, British American Tobacco made public many of its estimates of legal and illegal tobacco sales around the world. Combined with official reports from countries which monitor sales (like Canada and France), and with estimates from BAT’s competitors, these help give us a picture of what is happening to the global tobacco...

BAT reboots and rebrands for “a better tomorrow”.

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In a series of presentations to investors today, British American Tobacco laid out its “new purpose” and unveiled its new look.  Last year it was “transforming tobacco” and “accelerating delivery”. This year the catch phrase — trademarked of course — is “a better tomorrow. The new corporate purpose laid out by BAT’s management was “to...

Are concerns about vaping driving people back to cigarettes? Investors are told “no”

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In recent months vaping companies have been warning that regulations aimed at reducing vaping will “drive people to cigarettes.” The recent “facts not fear” campaign run by Imperial Tobacco Canada, for example, predicts that regulations to protect young people from pro-vaping advertising will be “forcing consumers to go back to cigarettes.” Even some public health authorities – like...

The “heterogeneity” of the vaping market and why it can hinder regulation-making

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A key challenge for health regulators when facing emerging nicotine devices is the complexity and change in that market place. Unlike cigarettes, which researchers and regulators have generally treated as identical products across geography and time, next generation products like e-cigarettes vary greatly in their design, contents  and marketing from place to another and from...

Another new year, another round of tobacco manufacturers’ price increases.

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This week Canadian tobacco companies raised the price they charge to retailers for cigarettes and other toabcco products. This month the price (per cigarette) went up by 1 to 1.5 cents in in most parts of Canada ($2.50 to $3.60 per carton), as shown in the memo sent by Imperial Tobacco to retailers on December...

Big tobacco funds and controls the new Vaping Industry Trade Association (VITA)

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[NB: On December 4th, VITA issued a statement objecting to and correcting some of the information provided in this blog. The original blog appears below, but is now annotated with reference to their objections and corrections.] Last week the first webinar was held between the Vaping Industry Trade Association (VITA) and its membership. Unexpectedly, one of...

How cheap will vaping products get before we see price as part of the youth vaping problem?

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A price war is underway among the four main manufacturers of the pod-style vaping products that are sold in convenience stores. Over the fall, each of the companies which sell these JUUL-type products has reduced its retail and/or on-line prices. The cost of a tellingly-labelled “starter kit” for JUUL imitators (Logic and Vype) is now...

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